MCD vs. WEN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCD and WEN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MCD | WEN |
|---|---|---|
| Company Name | McDonald's Corporation | The Wendy's Company |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Hotels, Restaurants & Leisure |
| Market Capitalization | 223.42 billion USD | 1.96 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | July 5, 1966 | May 6, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MCD and WEN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | MCD | WEN |
|---|---|---|
| 5-Day Price Return | 1.34% | -2.65% |
| 13-Week Price Return | -2.54% | -16.77% |
| 26-Week Price Return | 0.99% | -30.42% |
| 52-Week Price Return | 8.88% | -38.80% |
| Month-to-Date Return | 4.34% | 4.26% |
| Year-to-Date Return | 8.00% | -36.99% |
| 10-Day Avg. Volume | 3.35M | 8.33M |
| 3-Month Avg. Volume | 3.50M | 6.48M |
| 3-Month Volatility | 15.56% | 35.55% |
| Beta | 0.51 | 0.40 |
Profitability
Return on Equity (TTM)
MCD
95.13%
Hotels, Restaurants & Leisure Industry
- Max
- 83.01%
- Q3
- 39.51%
- Median
- 17.38%
- Q1
- 5.32%
- Min
- -45.92%
MCD’s Return on Equity of 95.13% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
WEN
100.78%
Hotels, Restaurants & Leisure Industry
- Max
- 83.01%
- Q3
- 39.51%
- Median
- 17.38%
- Q1
- 5.32%
- Min
- -45.92%
WEN’s Return on Equity of 100.78% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
MCD
32.21%
Hotels, Restaurants & Leisure Industry
- Max
- 26.45%
- Q3
- 14.67%
- Median
- 8.69%
- Q1
- 3.34%
- Min
- -11.30%
MCD’s Net Profit Margin of 32.21% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
WEN
8.63%
Hotels, Restaurants & Leisure Industry
- Max
- 26.45%
- Q3
- 14.67%
- Median
- 8.69%
- Q1
- 3.34%
- Min
- -11.30%
WEN’s Net Profit Margin of 8.63% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
MCD
45.80%
Hotels, Restaurants & Leisure Industry
- Max
- 38.76%
- Q3
- 21.15%
- Median
- 14.20%
- Q1
- 6.43%
- Min
- -14.56%
MCD’s Operating Profit Margin of 45.80% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
WEN
16.99%
Hotels, Restaurants & Leisure Industry
- Max
- 38.76%
- Q3
- 21.15%
- Median
- 14.20%
- Q1
- 6.43%
- Min
- -14.56%
WEN’s Operating Profit Margin of 16.99% is around the midpoint for the Hotels, Restaurants & Leisure industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MCD | WEN |
|---|---|---|
| Return on Equity (TTM) | 95.13% | 100.78% |
| Return on Assets (TTM) | 14.78% | 3.86% |
| Net Profit Margin (TTM) | 32.21% | 8.63% |
| Operating Profit Margin (TTM) | 45.80% | 16.99% |
| Gross Profit Margin (TTM) | 57.00% | 63.17% |
Financial Strength
Current Ratio (MRQ)
MCD
1.30
Hotels, Restaurants & Leisure Industry
- Max
- 2.68
- Q3
- 1.62
- Median
- 1.11
- Q1
- 0.74
- Min
- 0.19
MCD’s Current Ratio of 1.30 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
WEN
1.45
Hotels, Restaurants & Leisure Industry
- Max
- 2.68
- Q3
- 1.62
- Median
- 1.11
- Q1
- 0.74
- Min
- 0.19
WEN’s Current Ratio of 1.45 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
MCD
40.64
Hotels, Restaurants & Leisure Industry
- Max
- 9.88
- Q3
- 4.54
- Median
- 1.52
- Q1
- 0.27
- Min
- 0.00
With a Debt-to-Equity Ratio of 40.64, MCD operates with exceptionally high leverage compared to the Hotels, Restaurants & Leisure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
WEN
29.65
Hotels, Restaurants & Leisure Industry
- Max
- 9.88
- Q3
- 4.54
- Median
- 1.52
- Q1
- 0.27
- Min
- 0.00
With a Debt-to-Equity Ratio of 29.65, WEN operates with exceptionally high leverage compared to the Hotels, Restaurants & Leisure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
MCD
9.26
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 3.87
- Q1
- 1.19
- Min
- -11.84
MCD’s Interest Coverage Ratio of 9.26 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
WEN
3.43
Hotels, Restaurants & Leisure Industry
- Max
- 26.88
- Q3
- 11.95
- Median
- 3.87
- Q1
- 1.19
- Min
- -11.84
WEN’s Interest Coverage Ratio of 3.43 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MCD | WEN |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 1.45 |
| Quick Ratio (MRQ) | 1.03 | 1.32 |
| Debt-to-Equity Ratio (MRQ) | 40.64 | 29.65 |
| Interest Coverage Ratio (TTM) | 9.26 | 3.43 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MCD
2.24%
Hotels, Restaurants & Leisure Industry
- Max
- 5.88%
- Q3
- 2.37%
- Median
- 0.68%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Yield of 2.24% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.
WEN
9.24%
Hotels, Restaurants & Leisure Industry
- Max
- 5.88%
- Q3
- 2.37%
- Median
- 0.68%
- Q1
- 0.00%
- Min
- 0.00%
WEN’s Dividend Yield of 9.24% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
MCD
59.51%
Hotels, Restaurants & Leisure Industry
- Max
- 127.31%
- Q3
- 56.79%
- Median
- 19.58%
- Q1
- 0.00%
- Min
- 0.00%
MCD’s Dividend Payout Ratio of 59.51% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
WEN
92.71%
Hotels, Restaurants & Leisure Industry
- Max
- 127.31%
- Q3
- 56.79%
- Median
- 19.58%
- Q1
- 0.00%
- Min
- 0.00%
WEN’s Dividend Payout Ratio of 92.71% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | MCD | WEN |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 9.24% |
| Dividend Payout Ratio (TTM) | 59.51% | 92.71% |
Valuation
Price-to-Earnings Ratio (TTM)
MCD
26.59
Hotels, Restaurants & Leisure Industry
- Max
- 59.44
- Q3
- 33.98
- Median
- 22.25
- Q1
- 15.53
- Min
- 7.61
MCD’s P/E Ratio of 26.59 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
WEN
10.04
Hotels, Restaurants & Leisure Industry
- Max
- 59.44
- Q3
- 33.98
- Median
- 22.25
- Q1
- 15.53
- Min
- 7.61
In the lower quartile for the Hotels, Restaurants & Leisure industry, WEN’s P/E Ratio of 10.04 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
MCD
8.56
Hotels, Restaurants & Leisure Industry
- Max
- 7.74
- Q3
- 3.88
- Median
- 2.05
- Q1
- 1.19
- Min
- 0.17
With a P/S Ratio of 8.56, MCD trades at a valuation that eclipses even the highest in the Hotels, Restaurants & Leisure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
WEN
0.87
Hotels, Restaurants & Leisure Industry
- Max
- 7.74
- Q3
- 3.88
- Median
- 2.05
- Q1
- 1.19
- Min
- 0.17
In the lower quartile for the Hotels, Restaurants & Leisure industry, WEN’s P/S Ratio of 0.87 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
MCD
160.46
Hotels, Restaurants & Leisure Industry
- Max
- 20.90
- Q3
- 9.78
- Median
- 4.29
- Q1
- 2.22
- Min
- 0.47
At 160.46, MCD’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
WEN
19.43
Hotels, Restaurants & Leisure Industry
- Max
- 20.90
- Q3
- 9.78
- Median
- 4.29
- Q1
- 2.22
- Min
- 0.47
WEN’s P/B Ratio of 19.43 is in the upper tier for the Hotels, Restaurants & Leisure industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | MCD | WEN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.59 | 10.04 |
| Price-to-Sales Ratio (TTM) | 8.56 | 0.87 |
| Price-to-Book Ratio (MRQ) | 160.46 | 19.43 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.36 | 7.51 |